tv MONEY With Melissa Francis FOX Business June 3, 2013 5:00pm-6:01pm EDT
would lay off 18% of the work force and also or guidance for the second quarter and fell about 12%. >> nominee with melissa frances is next. >> the irs seeks to a new low. it is hard to believe but $50 million on employee conferences between 2010 and 2012 including motivational videos like the cupid shuffle. can you make of madness stop? $1 billion or best how huge offers through the era of sub billion dollar buyout is upon us again but are the company is really worth it? who made money today? investors making of a breakthrough against skin castor -- skin cancer.
even when they say it's not not, it's always about money. >> seriously? while the irs is targeting conservative groups some workers were making videos to prompt them sews up for lavish conferences paid for buy you. an inspector general's report says the irs has $60 millioo on conferences between 2010 and 2012 including videos to presidential suites. for real? who will be held accountable for the i.r.a. set of control? joining us with reaction is congressman bill march the republican from texas.
let's died in and i will start with congress van issa and those workers that testified they were told to do this from washington and i paraphrase they have then thrown under the bus but they were getting headquarters and how to verify that and if you believe it? >> you don't have to divorce yourself from common sense we used to tell that to the jurors. if you see that somebody finds out about illegality within his own department, one year ago before the election making 157 trips to the white house , then you have to divorce yourself from reality to sink he did not mention to anyone, either he is the worst and incompetent employee in irs history or
he did report it and they found out they were targeting conservatives. but we found out it was not just east craig getting rolled. melissa: but congressman cummings' the top democrat on the oversight panel said net that no testified to this that they were getting their orders from washington how do you reconcile? how can you look at the same information to listen to the same testimony with a different impression? >> he is right as far as testimony that people have not come right out that i have when orders from the white house. i don't know if they will but we have seen is the irs has a taste for the conservatives and have come after them and if the bear gets a taste for human flesh you have to put them down. i am not suggesting that with the irs agents.
melissa: how high does that go? from the commissioner on down? >> if they can show they have been good employees than maybe they can get on with a different agency. this is a disaster. the hearings were not done and i did just leave a hearing with appropriations and when i hear a gentleman whom police say -- say we have to get to the motivation of what happened. was agreed, power? melissa: i think you would agree to figure out where it started and how high it went >> exactly. melissa: it started higher than that and how you prove it beyond a reasonable doubt. do you need a smoking gun and a? >> we don't need it beyond a
reasonable doubt to clean up the government but we need to have hearings and people in need whistle-blowers to come forward to give us the truth so people can have faith in government. they will not have it with the irs. and also they go very well to the left if they have a hard time to go to the right melissa: that is a good joke to go to the top to find the topless lerner still collecting her salary that is more than you are paid to be a congressman to be paid to stay aa home and you worry this is hush money to keep her from talking that where she got her orders from? it does not matter and i think they believe there really is punishment to stay at home and not work.
mainstream tv is punishment enough but it is ridiculous. you have the same thing with fort hood of guy who killed 13 americans still getting paid. is pretty enrages. melissa: it is outrageous. but first reacting to the news of the excess of spending with a $50 million and 220 conferences 4 million going to the conference in anaheim with baseball tickets and presidential suites how can this go on? >> it has got to be stopped. if you attach that article through twitter they can't find this information in there but what about $17,000 for someone to speak to the agents about leadership through art?
are you kidding me? i have a daughter who is an incredible artist but for the irs? do your job. melissa: your so frustrated because we hear about this after the fact when the money is spent and it was our hard-earned dollars. thank you congressman. here is the money question of the day are you more outraged about the ira's targeting groups are spending that money on conferences? there are so many disgraceful elements and the general consensus so far it is hard to pick just one to be furious about. like us on facebook or follow me on twitter. it is fine for coming congressman was talking about it with melissa a francis. bp says it will spend $1 billion to ramp up oil production in alaska and it will add to drilling rigs in the company says they are
combined with upgrades to existing facilities could create 200 jobs. new study says climate change could prevent the u.s. from meeting the biofuel goals. the report from uc davis says in 40 years of hotter plan that would reduce the yield of corn grows for ethanol by 7% while boosting the need for irrigation by 9%. this ceo of energy use -- europe and is accompanied denies the bribes were paid but they agreed to pay $390 million on a settlement to u.s. and french officials. they're waiting word to see if there will be a trial over the allegations in france. word of another company being bought for $1 billion. what is in the water? we will talk about it. you could be next. i could be next.
given way to sleeping. where sleepless nights yield to restful sleep, and lunesta eszopiclon can help you get there, like it has for so many pple before. do not take lusta if you are allergic to anything in it. when taking lunesta, don't drivor operate machinery until you feel fully awake. walking, eating, driving orens while asleepithout remembering it the next day have been reported. lunesta should not be taken together with alcohol. abnormal behaviors may include aggressiveness, agitation, hallinations or confusion. in depressed patients, worsening of depression, including risk of suicide, may occur. alcohol may increasethese. allergic reactions such as tongue or throatwelling occur rarely and may be tal. side effects may include unpleasant taste, headache, dizziness and morning drowsiness. ask your doctor if lunesta right for you. then find out how to get lunesta for as low as 5 at lunesta.com there's a land of restful sleep, we can help you go there,
melissa: is this a new era of the billion dollar buyout? now eats bidding more than $1 billion for the video streaming service hulu. it is partially owned by fox business network parrnt company news corporation. so we saw them pay 1.$1 billion then facebook and then a buyout for instgram. i need $1 billion. with me is managing director of technobabble. also from the wall street journal thank you for
joining me. i feel that i am back with said doc, age with the interest and hulu using data making up the words but they are companies that could potentially be targets. is this a new era? >> you'll find this hard to believe but a billion dollars is not what it used to be. that used to be the target but now because of facebook and social media the valuation keeps going up now that is the new bogey. [laughter] we want to be there but companies are coble and you can build them more cheaply than you ever could before. melissa: that is wonderful so he may be helpful i can do this by the end of the show because i definitely need the cash for the summer. some of the rules, does it
have to be software? is that a central? >> it is cheaper to do a software company a lot of the hardware companies require a lot of capital so if you look in all of these companies getting bigger with, instgram, hhlu day are based around a common theme. melissa: but then you don't have a product you are not selling anything they are silly things you do online menu are supposed to be working. it is $1 billion for nothing but the number one rule is don't create anything that makes anything. >> that is not true. your attention is being sold and your pocketbook is sold and that could be worth a lot of money.
melissa: one of the rules is to have a built-in audience because you have to bring those eyeballs with you. but one that really bothers me is the interest that you like to doing your free time that is pinterest. >> it is the fastest growing social network beating the growth rate of facebook and twitter that are established pinterest is the next big company to get picked up. melissa: what is of value? on i just collecting pictures of what i want to do some day? >> that is the bigger companies want to look at the product and how to use them in your daily life it is in its revenue for
advertising. >> if you go to google you enter a word. melissa: but i would never waste my time to post a picture of what i want to buy i would just go buy it. >> people go to pinterest they're looking for ideas of things to buy better cool or popular. it is a decorative business. melissa: i think i may have already blown it does the ceo have to be under 30? i know that i look like i am under 30 but i am not. >> i hope there is a chance
for me. melissa: it is almost like you have to be in your 20s. >> also he was a high-school dropout and mark soderbergh was a college dropout -- mark sector. was a college dropout. >> but they are just sitting in that door room looking for the next facebook or maybe what they are not doing when they should study i am not sure i to come up with the company but we have a good start. thank you. when does the budget surplus not have a surplus? california feels flush but we have the details could you get what this is a into seconds? do you have it? if there was $1 million on the line?
then you'll know how uncomfortable it can be. [ crickets chirping ] but did you know that the lack of saliva can also l to tooth decay and bad breath? [ exhales dpl] [ale announcer ] well there is biote. specially formulated with moisturizers and lubricants, biotene can provide soothing relief and it helps keep your mouth healthy, too. [ applause ] biotene -- for people who suffer from dry mouth. a lot can happen in a second. with fidelity's guteed one-second tde execution, we route your order to up to 75 markrket centers to look for the best psible price --
maybe ev better th you eecteted. it's all part of our goal to execute your trade in one second. i'm derrick ch of fidelity investments. our one-secondrade execution is one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. it'sonday. a brand new start. your chance toise and shine. with centurylink as your trusted chnology partner, you can do just that. wi our visionary cloud infrastructure, globalroadband network and custom communications solutions, your busess is more reliable - secure - agile. and with responsive, dedicated support, we help you she more reliaevery day of t week..
♪ melissa: whether on wall street or main street here is to make many. if you own merck clinical test results for a skin cancer treatment came back positive for drug shrink tumors in a large number of cases and that sent shares jumping nearly 4%. meanwhile losing money today, the co-founder of zinga part of an effort to cut costs that hammered the stock which tumbled nearly
12%. owning 87 point* 4 million shares that means he lost $35 million. to came up short today? will smarts -- will smith movie tank at the box office it cost $135 million to produce and 100 million to market but it took in 27 million. do the mass. that is not good and way below the low end of estimates. california dreaming. the golden state is closing a budget surplus for the first time in more than a decade but lawmakers can agree on what to do with the many. governor jerry brown wants to save it, shocking but the legislator wants to bring back programs cut during the recession. we're in los angeles with more. tell us about this story. >> we're looking at between
one and $4 billion surplus for the first time in more than a decade and three governors. governor brown wants to save it may be paid down the pension that and that the revenues are not sustainable is his fear that could mean a repeat of the past. >> from the time they get up they are taxed. this goes on all day long. tax, tax, tax. >> from 2003 helped to get arnold schwarzenegger elective but as they found out state spending was worse california was on the brink of bankruptcy three years ago with $60 billion in debt after borrowing and cutting and raising taxes they are in the black. >> we have to be careful we
have to be prudent. >> but many are planning to spend every penny of the new-found wealth. >> if there is a $4 billion excess some programs can be restored. >> to spend more money on social services. >> even the democratic colleagues will return to the tax and spend policies that broke california. >> people say we have many but i don't have a week to board. >> the governor said we screwed this up before wee3 assumed revenues and daughter cells in big trouble. so california's budget is i the dependent on capital gains but many fear is a result of the onetime stock sell-off that is why the governor says this may not
be sustainable to see if he can control sacramento with said majority of democrats. >> that is the point* they were capital gains it doubled for the year so everybody took them. it is expected the number will be half of that next year how do you put programs back into place based on the one time gains without logic ? >> property values are going up with good economic activity but do i agree but this is politics the unions won a politics and paybacks with high-speed rail the earthquake detection system and he owes money to the schools. you put that in a legislator
what will happen? people want a payback. melissa: jerry brown argues for tightening the purse strings the end of the road is coming. thank you for coming. critics tries to tear down steve cohen but should they be worshipped as a ceo? the power panel says if they are a buy sell or hold. forget the lottery the odds of winning a $1 million on wheel of fortune is nothing like to have never seen especially the final clue is what you have seen. we have the woman who took only seconds to answer the second in history to defy the odds. coming up. ♪
could never happen to them. and that the homeowners insurance protects them. [ thunder crashes ] it doesn't. stop pretending. only flood insurance covers floods. ♪ visit floodsmart.gov/ptend to learn your risk. try align. it's t number on ge recommended probiotic that helps maintain digeste balae. ♪ stay in the grooveith align.
faith in their of leadership abilities? we have our panel here to buy sell or hold some of the biggest names in business. jonathan honig and also hillary kramer president and chief investment officer of ing capital thank you for joining us. this is what got us thinking on the topic have a guy who has an incredible track record is paid powell powell, a tesla and solar city -- and blasting into outer space without question ingenious and then he wants to pack up our bags and move to mars? is steve genius? >> it is a by.
he is so innovative what he has done with tesla he has grown a real company with real product and he has all the vision but so did steve jobs and one day we will look at elon musk to put them in the same category of the innovators and leaders of technology in this country. melissa: that does not eclipse crazy. do you care? >> be careful calling him crazy he would lambasting his critics. melissa: i which died of happiness if you put anything about me on twitter [laughter] not only to put his own money on the line but also their money as well. i give him a strong buy but i would not buy the stock it is going to fight to fast.
>> i really like elon musk anyone who is characterized to make a movie based his character and. melissa: that is fabulous. moving onto jamie died in. this is someone in the financial crisis when the hundred jamie diamond and a diamond is forever but then oliva said we would rip him down because he was worshiped and one mistake along the way and if i see -ne more dimon in the rough. >> i give him a strong buy. he will keee building the company where he had to improve the balance sheet and the credit situation and whole problem in being too powerful or too strong will be in the past as well as this with the of wailes
trading and risk management. jaime dimon is excellent at empowering management, risk management to do things like that the government to pay him to take on bear steaans and he is immune to any risk the man is brilliant so go somewhere else. melissa: that was brilliant to save the lme to be chairman i don't need to be ceo. i will go away. i don't need the money then all of a sudden people found religion and that it was a bad idea. >> it is a by. they would be crazy to let him go. he is a target he is a target for everyone from government to the newspaper headlines but hillary hits the nail on the head a terrific ceo doing great for jpmorgan i would not bet against the stock.
>> i agree. keep in mind the 2008 crisis that we are years away but how quickly we forget. that was terrific and he was a beacon of light in his firm was considered one of the healthiest of the nine largest. melissa: then we give a tougher one. steve cohen. the greatest writer of all time or something less legal? we don't know anything yet. but there's a lot of controversy. >> a strong buy 10 years of 20% returns? melissa: you are now worried
redemptions? >> i am not he is a scape goat by insider-trading laws that is not objective but they are arbitrary to punish successful businessman a strong buy for him and a strong sell for the sec. >> he is brilliant and singlehandedly has created a whole form of a hedge fund management and is really successful it doesn't matter if everyone redeems he has $10 billion he can manage it and i respect that he is not a marketer but he really sets in front of his screen all day and i love that about him. melissa: he gets 3 percent so you don't have to advertise you can count your dollars all day. >>. >> i will have to deviate. if i was am i would be happy it took 20 million up at
9 billion from 1982 but the wake of the problems that taking place right now you cannot ignore that. lew will reinvest into? are they visionary? can they keep everybody in a good compliance situation? this has low marks for me. melissa: ron johnson? he had fascinating past with appell and a target now j.c. penney but some say maybe he was not given the time. is the a genius? >> he is the case study of moving out of his strengths but he leaves of a successful career in moving in j.c. penney and maybe he was overconfident and felt. melissa: you gave him a cell. >> it is a sell.
he took 111 year-old firm and practically distorted because he did not understand who his customer was. >> the firm was in shambles before ron johnson got there it is up by. >> any company would be happy to have him on their board or as the ceo despite j.c. penney. melissa: tell him he is wrong. >> he had the support of his board and everything that ron johnson needed to be successful. >> less than one year? >> he did not get it and spent more time on the private jet. melissa: but he looked so happy in that photo. come back again. coming up next, every dream about spinning the "wheel of fortune" $41 million?
you have to beat so many variables to even have the chance is less than 1.5%. then you still have to guess what this is. we will talk to the second person in history to ever do. what is it? quick. >> no idea. at the end of the day it is about those titles. ♪ ♪ we went out a asked people a simple question:
w old ishe oldest perso you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well to their 90s and that's a great thing. but even though we're living longer, one thing that hasn't changed much is the official retirement age. ♪ the question how do you ke sure you have the money you need to enjll of these years. ♪
♪ melissa: it it takes skill to win any game with the stars have to be aligned to actually win the big prize and last week auden became only the second person in the show's 30 year history to win when million-dollar jackpot. it is not just about spinning the wheel and solving the puzzle there are seven different criteria to fall into place an order to lee and the big one including guessing what this is. in under 10 seconds. can you guess that? i will let you think about that item is next to me i
watch this 100 times it is the best piece of television so many things have to happen you have to spin the wheel then land on the $1 million peace, then it not go bankrupt, answer this correctly, i keep going, and get to the end and spend again and the land on the spot and you don't know what it is then you pick letters and when i watch out moment they said it is a thing and almost nothing lived up and you got two of them did your heart sink? >> yes. there it goes. i thought i could get a lot of letters to be the easy solved. melissa: there was nothing. they let you pick one more letter. what was it?
>> g second to last at that moment did you instantly know? then you only have 10 seconds. melissa: did you know? >> there is. look at that. can you figure out what this is? how long did it take? >> i knew the first word was tough and i've looked at the letter board and i tried to see what letters were left and what is tough? i worked out so it must be worked out. melissa: that is amazing. even the post cannot believe the key almost dies in the open to reveal your prize and it also reads $1 million. did you have a heart attack? >> i was then shot. >> i am surprised i did not collapse.
look at the clip. >> thing is the category you have 10 seconds. talking out. good luck. >> tough workout. >> what? >> we have a million-dollar winner. >> your fiancee was in the audience how did you handle that? he looks thrilled. >> his mouth was wide open and arms in the year charging forward. melissa: rabil you do with the many? we have a wedding set for november and it will help to plan backed. melissa: you will not blow which all on the one million-dollar wedding? have people come forward have people ask to? >> patti ben and other game
shows before? are you good at this? >> i was on prices right 10 years ago. melissa: sometimes they are professionals led to the producers say? icahn imagine the people who own the show were saying they had to hand over $1 million. do they have insurance? were they shaking your hand? >> they were happy for me. the stars had to align. the show has been on and 30 years of only happen and one other time and some anything's have been. congratulations and enjoy the many. don't blow it all on one spot. watch "money" to make it
i'm thinking about china,. brazil, india. the world's a big place. i ishares international etfs. emerging markets ansingle countries. find out why ninout of ten large professial investors emechoose ishares ansfor their etfs.. ishares by blackrock. call 1-800-iares for a prospectus, which includes investment objectives, risks, charg and expenses. read and consideit carefly before investing. risk includes possible loss of principal.
♪ melissa: it is time for fun with spare change. thank you for joining us. check out these pigeons think all they do is gavin's? maybe should watch your back. they may be smarter than you think. researchers have discovered that it does do a pretty good job of taking tests by pecking on test by a pecking on the touchscreen. they're everywhere in new york no way of right that is amazing. >> i believe this sincerely because pigeons are smart whenever i drive fast on the parkway and pigeon will always hit the target on my windshield. they are bright.
melissa: visit is incredible piece sees the reward of the line moving. >> they give them food is what happens. melissa: that makes everything work. >> i'm not surprised. to survive in a city most pigeons in a city, to survive in this city, especially a city york city you have to be savvy and street smart and the pigeons are good. melissa: and if we got the forget the real rats out of this or they would do pretty well. >> probably. >> if you can survive in new york city, you're smart. melissa: moving on to the best tippers, according to a new survey by trip adviser. turns out that more than two-thirds of germans, 69 percent, say they always leave money at the hotels and restaurants followed by americans with only 57 percent saying that they always leave a tip. the worst tippers, what i was interested in, according to the survey only 36% of spanish people always tip for service.
are you surprised that only a little more than half of americans say they are listed? >> i'm actually very surprised. americans, we are known as good tippers. i would like to know how many people actually -- what amounted to representative. europeans and the germans are better tippers than last. melissa: that is a great point. they did not talk about quantity but if you do or not. >> the germans are underrated very humorous people and angela merkle, they just get the bad rap you can just blame it on the french.
melissa: and interesting invention cost nearly $10. the solution is for holding a pig in a blanket and a glass of champagne in one hand and being able to shake someone's hand in the other. this would solve that problem. you wherein under finger. that little tiny plate. instead of a fabulous ring you can wear a pig in a blanket. would you be caught dead doing this? >> the cleanliness freaks, this is terrific. eat the pad to with one hand and brush your teeth with the other. terrific. the greatest thing about this is that they sell them in reusable tin ring packs. that means you get your hands on it, you get your much on it. then you throw it in the dishwasher, stays on it, throw it in the dishwasher and server to your next guest melissa: like that picture. when that person tips the glass back to drink champagne what
happens to the food that he or she is eating? >> that is what i was thinking. great invention on its face, but what happens when you drink. therein lies the problem. i guess you have to eat the appetizer first and then bring. the fact that you have to do all that, consider that. so i think if they tweaking it could work. solve the problem. any product that solves a problem is worthwhile. >> you need a lot of tweaking the. melissa: somebody gave me these two plays the girl on the ring of your wine glass and i thought it was a great invention until you take a drink of one in the third is all over the floor. they you just eat the food and then go on with what your doing. >> too many glasses of champagne, are you going to remember? melissa: all right. next up, as a minor disturbance that. a new study finds one in ten americans are shot pollex. we joke about this.
15 percent of adults report that their shopping habits have made them go into debt. clearly all the options for on-line shopping not helping, like amazon, which i have a problem with. >> is there. bad. >> retail therapy for reason. melissa: you have a problem when you say it like that. what do you think? >> she does have a problem. the last thing i bought was this blackberry tenure -- ten years ago. melissa: where your clothes come from? >> good will. thank you for asking. >> and actually, i believe it's one in sin, 10%. i bet it's much higher. >> those are the people that admitted to. most people are going to admit that. melissa: i think that number is very low. amazon is not helping the problem. of, my gosh. >> ipad.
the app. i have the amazon have on my ipad. that is just the end of it. a disaster. anyway. i have problems. as all the "money" we have to you today. o.c. becker tomorrow. "the willis report" is coming up next. thanks, guys. ♪ gerri: hello, everybody. i'm gerri willis. tonight on "the willis report" the irs scandals deepened as video surfaces of millions spent on lavish conferences. also, out of control medical costs. and your medical privacy at risk. important fact for all consumers. watch out for you tonight.